IIS holding up requests in queue instead of processing those

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I'm executing a load test against an application hosted in Azure. It's a cloud service with 3 instances behind an internal load balancer (Hash based load balancing mode).

When I execute the load test, it queues request even though the req/sec and total current request to IIS is quite low. I'm not sure what could be the problem.

Any suggestions?

Adding few screenshot of performance counters which might help you take decision.

#Processor Time

enter image description here

IIS counters - 1

IIS counters - 2

Click on image to view original image.

Edit-1: Per request from Rohit Rajan,

Cloud Service is having 2 instances (meaning 2 VMs), each of them having 14 GBs of RAM and 8 cores. I'm executing a Step load pattern start with 100 and add 100,150 user every 5 minutes, till 4-5 hours until the load reaches to 10,000 VUs.

Any call to external system are written async. Database calls are synchronous.

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